From Star Advertiser:

The government says gun dealer Arthur Lee Ong collected his grandmother's retirement checks 19 years after she died and lied about his assets and income in his 2001 divorce, information prosecutors plan to use in his upcoming tax evasion trial.

The trial is scheduled for next month.

The government says the Magnum Firearms owner had power of attorney over the money in his grandmother's savings account and should have closed the account when she died to halt direct deposits of her civil service retirement checks.

Ong kept the account open and in 2003 and 2004 transferred money from that account into his own bank accounts, the prosecutor said in court records.

Ong said lawyers handled his grandmother's estate and that they or the bank should have closed the account. He said that when he became aware of the error he fully cooperated and paid back the government all the money it was owed. The government did not prosecute Ong for any crimes.

"I was honest in taking care of the matter," Ong said.

The government also says Ong failed to list numerous bank accounts and properties as assets when he filed for divorce in 2000. He was granted an uncontested divorce in 2001.

Ong said he didn't list the accounts and properties because they weren't his. He said that when his grandmother died, he inherited several properties which he placed in an irrevocable trust to benefit the Hawaii Baptist Foundation, Hawaii Baptist Academy and Olivet Baptist Church.

An indictment a federal grand jury returned in 2009 says Ong and two unnamed co-conspirators came up with a scheme to hide his income and avoid paying federal income taxes since 1994.

The scheme involved Ong transferring income from Magnum and three rental properties he owns to a trust and another entity he created to hide his income from those sources. He then withdrew money from the trust, the other entity and Magnum for his own benefit, the indictment says.

Ong is also facing charges that he failed to file individual income tax returns beginning with the calendar year 1994 and filing false corporate and trust tax returns.
 
http://www.staradvertiser.com/newspremium/hawaiinewspremium/20110930_tutu_gun_shop_figure_in_tax-evasion_case.html?url=130840518
 
Correct me if I'm wrong, but didn't he already transfer his FFL?

should have closed the account when she died to halt direct deposits of her civil service retirement checks.

WTF, how bout the state get their accountants off their arses and be accountable for taxpayer money?

If anyone was wondering how his store stayed open...^^^

Tax evasion is hard to beat. Ask Al Capone.

Thanks for the info Kaneohe.

Let's hope this guy gets what he deserves, Ive been there Before and just like everyone else had a terrible experience with art. Like it's been said here before the only thing that shop is good for is to handle a firearm you might be interested in that he has in stock and then order it from OGC or one of our other REPUTIBLE local gun shops.

The part I don't get is how he said he didn't know that the money was being deposited in the account. That "lawyers handled his grandmother's estate and that they or the bank should have closed the account". But you turn around in 03 and 04 and transfer money out of the account. What, did that account have some ponzi scheme returns on it or something (500% returns or something)? How can you feign ignorance, when (if you checked the account balance before the withdrawl) you noticed way more money in there than should have been.

Just sounds like outright lies to me, and reafirms the character assesment I have of that guy... 

Seeing as how this has taken nearly a decade to come this far, one would have to assume that what these guys (allegedly) did was fairly well thought out, along with reasons why things were being done.  We shall see who has the better lawyers.

Dang, that sux... I'll help him out and take that Arsenal Krink off his hands for cheap before they take it from him......

Dang, that sux... I'll help him out and take that Arsenal Krink off his hands for cheap before they take it from him......

Ill buy it off you at cost so I can SBR it...

Let's hope this guy gets what he deserves, Ive been there Before and just like everyone else had a terrible experience with art. Like it's been said here before the only thing that shop is good for is to handle a firearm you might be interested in that he has in stock and then order it from OGC or one of our other REPUTIBLE local gun shops.

damn right...  you had a terrible experience in his shop,  he deserves time for that.

My experience is irrelevant, breaking multiple laws is not.

My experience is irrelevant, breaking multiple laws is not.

Look at tax laws and see who gets away with it. Money is as traceable as DNA

Somebody is going to wear some stainless bracelets out of this one.

Leave the poor guy alone.

He's just another man.

If you haven't committed a violent or sexual crime Then you don't deserve to go to jail.

If he has indeed committed some tax fraud then I hope he can pay his debts without rotting in jail.

Lets not wish him bad.

^^^He allegedly used to beat up his wife.  Others know the story better, but it seems he never had to pay (figuratively or literally) for that.  Maybe this is karma.

Leave the poor guy alone.

He's just another man.

If you haven't committed a violent or sexual crime Then you don't deserve to go to jail.

If he has indeed committed some tax fraud then I hope he can pay his debts without rotting in jail.

Lets not wish him bad.

I rarely agree with KK, but he's partially right. While I have no love for the guy (Art), unless we're on the jury and hear all the evidence...we should probably lay off the whole "he deserves jail" talk.

^^^He allegedly used to beat up his wife.  Others know the story better, but it seems he never had to pay (figuratively or literally) for that.  Maybe this is karma.

My ex and the State of Hawaii alleged the same about me. Apparently, a complaint of abuse is enough these days. You get charged, arrested, booked, have to post bail, and turn in ALL your firearms & ammo while waiting to appear before a judge. It doesn't matter if true or not, someone willing to sign a statement saying you did is all it takes. For me, I spent 8 weeks on a rubber gun squad riding a desk, waiting for a trial. Then the prosecutor took three hours to review evidence that I wasn't in the country when this alleged event took place. <---It's so f'd up...confirmed orders and affidavits from command were not enough. They had to call the DoD & State Department to verify!!! THEN, HPD needed 2 hours to "find" all my stuff.

I support victims rights, but claims of abuse are becoming a common tactic in divorce and custody hearings. Whether Art did or not shouldn't matter. It's still America and just like anyone else, he's presumed innocent until proven guilty. 

That (the conviction) explains the outrageus prices (even for him) he has for his accessories as of late. I went there looking for a holster two weeks ago, it was $28.00, since he was the only one who had it in stok on the Island, I went back this past week and it was $50.00. when I looked around the store, all the accessories have a HUGE mark up ($20.00 +).  WTF OVER. when I spoke to him about it, he gave me the usual "oh well" look.

I am not sure why the price hike, but its appears to be a move related to his issues with the feds.

I am not saying he deserves this or that, that's between him, the feds and God, but Karma does have a way of getting the last lough (in most cases)

That being said, I am not going to miss him or the store, like somebody mentioned, the only thing that store was good for is to get your hands on the weapon you want, fondle it a bit (granted you have a rifle permit in hand and/or not an IRS agent :) then go order it from the other gun shops (OGC, Security Equipment, Gun Source or Young Guns).

BTW, does anybody know when OGC will have their range up and running???

Just to change the negativeness in the air a little... I bought a rifle there the other day cause it's not made anymore and only Magnum had one..even after searching online...and his prices haven't changed at all....

 I even asked if he would take an offer (without even giving an offer) and without hesitation he said "NOPE"... It was still a good price and I don't think he knew it wasn't produced anymore.. I think if he knew, he would give it the "Art Special" price...

He was scolding his secretary cause she didn't know how to clear the rifle when she handed it to me...which was no probs cause I checked it as she handed it to me...
He also scolded her saying "You not supposed to let anyone handle a firearm if they don't have a permit!"
Then looked at me and said "Do you have a rifle permit!?!?" 

He was also scolding a new worker about keeping an eye on the range...

Art is very stressed out.

Just to change the negativeness in the air a little... I bought a rifle there the other day cause it's not made anymore and only Magnum had one..even after searching online...and his prices haven't changed at all....

 I even asked if he would take an offer (without even giving an offer) and without hesitation he said "NOPE"... It was still a good price and I don't think he knew it wasn't produced anymore.. I think if he knew, he would give it the "Art Special" price...

He was scolding his secretary cause she didn't know how to clear the rifle when she handed it to me...which was no probs cause I checked it as she handed it to me...
He also scolded her saying "You not supposed to let anyone handle a firearm if they don't have a permit!"
Then looked at me and said "Do you have a rifle permit!?!?" 

He was also scolding a new worker about keeping an eye on the range...

Wow, what a good little government lap dog.